Dizengoff West-Africa Nigeria Ltd on Sunday said that Nigeria Customs Service regulations and tariffs on semi-Complete Knocked Down (CDK) tractors did not encourage investors to establish local assembling factories in the country.
Mr Ritvonen Antti, Chief Executive Officer and Country Manager of the firm, made the assertion in an interview with newsmen in Lagos.
Antti said that the policy encouraged importation of fully-built tractors which attracted zero per cent duty and five per cent VAT.
“We are interested in bringing development to the Nigerian agriculture sector, especially in the assembling of tractors and other agricultural machinery.
“Dizengoff hopes to partly localise activities in Nigeria soon, however, some government regulations and policies do not always encourage that to happen.
“According to the customs duty policy, it is cheaper to bring the fully-built tractors. This will lead to limitations to tractor assembling and manufacturing in Nigeria.
“So, obviously, it will not open links for employment.’’
According to Antti, Dizengoff used to import CDK to be assembled in the country but stopped work after the review of the policy which did not encourage that.
The country manager expressed excitement over the review of the policy under the current restructuring of the sector under the incumbent administration of President Muhammadu Buhari.
Antti, however, urged that the Federal Government policies on import tariffs should be quickly implemented which would catalyse development.
Meanwhile, Mrs Ijeoma Nwala, the Public Relations Officer of the Nigerian Customs Service, referred to the online CET Code when contacted her via telephone.
The online CET Code reveals that the Track Laying Tractors (CET: 8701.3000.00) was 35 per cent duty and five per cent VAT.
The Agricultural Tractors Presented CDK or unassembled for the assembling industry (CET: 8701.9019.00) was zero per cent duty and VAT.
Meanwhile, Agricultural tractors fully-built (CET: 8701.9019.00) was zero per cent duty and five per cent VAT.